Poor enforcement of GI tag affecting Darjeeling tea industry, says Makaibari’s Rudra Chatterjee

How has production in Darjeeling been so far this year compared with last year?

Production this year has been lower compared to last year, which itself saw a decline from the year before. Overall, Darjeeling’s tea production has been in a continued state of decline.

Darjeeling tea production has been declining sharply. What do you think has to be done to improve production?

One of the major factors for declining yields in Darjeeling hills is climate change, which has significantly disrupted traditional cultivation cycles. In addition to climatic challenges, several agronomic factors have also contributed to reduced productivity. These changes call for structured pruning cycles, systematic replanting and infilling. Mapping and replanting vacant or low-density areas can help restore plant density, with new bushes typically beginning to give yield within three to four years.

Adoption of regenerative agricultural practices shall contribute to sustainable improvements in the field thereby increasing productivity while maintaining the ecological integrity of the Darjeeling Hills.

How effective has the GI tag been for Darjeeling tea? And what are your thoughts on others like Nepal selling its tea as Darjeeling tea?

The GI tag for Darjeeling was a necessary and valuable initiative, given the region’s distinct terroir and heritage. It helps position Darjeeling tea as a geographically unique and high-quality product.

However, the lack of rigorous enforcement and monitoring has undermined the benefits. One key drawback has been the proliferation of teas from neighbouring regions — especially Nepal — being passed off as Darjeeling tea, exploiting loopholes in regulation and eroding consumer trust.

While the GI tag upholds quality and authenticity, the absence of a robust enforcement framework has allowed counterfeits to dilute the brand’s global perception.

How can input costs be lowered?

Input costs can be lowered by increasing field productivity. As higher the yields, the lower the costs.

Key levers to achieve this include:

– Enhancing production through the replanting, infilling and pruning strategies already mentioned.

– Efficient energy management: Conducting energy audits, optimising factory operations, and integrating renewable energy sources can lead to savings, particularly since energy — after wages — is one of the most significant cost components.

Overall, higher productivity and better energy efficiency are essential to achieving cost reductions sustainably.

How is the export demand for Darjeeling tea and the realisation at the auctions?

Export demand for Darjeeling remains consistent in traditional markets such as Germany and Japan, particularly during the first and second flush seasons. There is limited but steady demand in the autumnal period as well. However, overall international demand has stagnated.

One major issue is the availability of medium-grade teas from other origins (like Nepal) being sold as Darjeeling. This misrepresentation has diluted the premium category status, resulting in underwhelming consumer experiences and suppressed price realisations.

At auctions, prices are largely influenced by overseas buyers. While there is still demand for top-quality teas, the overall price trajectory remains flat due to competition from lower-cost substitutes that compromise on authenticity.

How do rising climate-related risks — erratic rainfall, heat, pests, etc — affect your yield targets and profit margins?

Climate change has become one of the most significant disruptors in agriculture. For tea, unpredictability in rainfall, extreme heat and increased pest activity directly affects both yield and quality.

India, being in a tropical zone, is particularly vulnerable to pest infestations that target young, tender tea shoots. Erratic weather also disrupts the cycle of flushing, leading to either premature or delayed harvests.

As a result, profit margins are continually under pressure. With weather unpredictability comes higher risk and lower forecasting accuracy, making stable planning and pricing more challenging than ever.

How do you manage soil health and nutrient cycles under your biodynamic farming model, and what impact has it had on crop consistency and cup quality?

Biodynamic farming focuses on improving soil vitality through natural, holistic methods that harness cosmic rhythms and terrestrial cycles. We use compost-based preparations made from herbs, minerals, and cow manure to enrich soil structure and microbial activity.

This approach enhances the long-term health and resilience of tea bushes, allowing for more consistent yields even under adverse weather conditions. Gardens following biodynamic principles tend to be more climate-resilient, maintaining some level of productivity when conventionally farmed gardens suffer from erratic flushes or crop loss.

From a quality perspective, the teas produced under this system tend to have higher antioxidant content and are globally recognised as clean, naturally healthy beverages.

Have recent geopolitical tensions — like the Iran conflict or Red Sea shipping route disruptions — increased freight costs or delayed deliveries for your European or West Asian buyers?

Yes, geopolitical disruptions have had a substantial impact. Conflicts in regions like the Red Sea have led to longer shipping routes, extended transit times and additional freight.

Can you share your average cost of production per kg and how it compares with the regional average for Darjeeling estates?

Our estates operate under certified organic, biodynamic, and fair trade systems. These certifications, while valuable for ecological and social sustainability, require investment in natural inputs and infrastructure that inherently raise the cost of production. For example, biodynamic farming uses herb- and silica-based soil preparations, composting, and natural pest controls—none of which are fast-acting or mass-produced like conventional chemical alternatives. Similarly, Fair Trade certification entails investments in community development and welfare.

Due to these factors, the cost of production in a certified garden like Makaibari is significantly higher than that of conventional estates in the region that do not follow such standards. However, this is offset by the higher value associated with the quality, resilience, and sustainability of the tea.

How about the first-flush production?

First flush production this year was encouraging both in terms of quantity and quality. However, in general, first flush yields have been increasingly elusive in recent years due to shifting climate patterns. Unseasonal rainfall, prolonged winters, and erratic temperature cycles — often driven by El Niño and La Niña phenomena — impact the ideal growing conditions required after the bushes emerge from winter dormancy.